FREE SAMPLES WORK How effective adults say free samples are Shouldn\'t do it 3 %

Question

FREE SAMPLES WORK
How effective adults say free samples are

Shouldn't do it 3 %
Nice, but not necessary 25 %
More likely to remember the product 20 %
More likely to purchase the product 52 %

You interview a random sample of 50 adults. The results of the survey show that 48% of the adults said they were more likely to buy a product when there are free samples. At an alpha level of 0.05, can you reject the claim that at least 52% of the adults are more likely to buy a product when there are free samples?


Use your conclusion from your work above to write a paragraph on the use of free samples. Do you think a company should use free samples to get people to buy a product? Explain.

Explanation / Answer

The test hypothesis is H0: 52% of adults are more likely to buy the product (mu = 0.52) HA: Less than 52% of adults are more likely to buy the product (mu < 0.52) Critical value for a one-tailed text at alpha = 0.05 = 1.645. If the test statistic is greater than this, there is sufficient evidence to reject the null hypothesis. The test statistic is Z = (p1 - p)/sqrt[p (1-p)/n] = (0.52 - 0.48) / sqrt [0.48(1 - 0.48)/50] = 0.04 / sqrt (0.004992) =0.566 The test statistic is less than the critical value, so there is insufficient evidence to reject the null hypothesis.

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